Cloosiv

Cloosiv was a Charlotte, North Carolina-based mobile ordering and payments platform that enabled consumers to order ahead and earn rewards at independent coffee shops and bakeries. Operating on a revenue model that charged merchants a tiered percentage fee per transaction, the company successfully scaled its network to support over 300 local cafe locations while amassing a dedicated user base of 125,000 active consumers. The application facilitated contactless ordering and loyalty programs, processing transactions that resulted in users spending more than $10 million across its merchant network. Prior to its August 2020 merger with inventory management platform Odeko, the startup participated in the Y Combinator Summer 2019 cohort and raised $1.15 million in total funding from prominent angel investors including Lachy Groom, Laura Behrens Wu, and Avichal Garg. Cloosiv was founded in 2017 by Tim Griffin.

High-Level Overview

Cloosiv was a mobile ordering platform designed for independent coffee shops, enabling customers to order ahead, skip lines, pay in-app, customize drinks, tip, and earn rewards—all within a single app that aggregated multiple local shops.[1][2][3][5] It targeted small businesses lacking resources to build their own apps, charging merchants a percentage per order (decreasing with volume) while helping them compete with chains like Starbucks.[3][5] Founded in 2017 in Charlotte, North Carolina, Cloosiv raised $1.15M, grew to support nearly 300-315 locations by 2019 with strong KPI growth, but merged with Odeko in August 2020, after which it ceased independent operations.[1][2][3]

Origin Story

Cloosiv was founded in 2017 by Tim Griffin (CEO, Charlotte-based) alongside James (likely James Durrant or similar, Arlington-based) and others, initially testing broader mobile ordering functions after launching in January 2018 in Charlotte, NC.[1][2] The team pivoted in July 2018 to focus exclusively on independent coffee shops, recognizing chains' dominance in white-labeled apps and small shops' need for affordable mobile tools.[2][5] Early traction came quickly post-pivot, scaling to nearly 300 locations by early 2019 with significant monthly growth in key metrics; a $1M seed round in October 2019 from investors like Y Combinator's Paul Graham, Gigster's Roger Dickey, and Electric Capital's Avichal Garg fueled expansion plans toward 500+ locations.[2][3][5]

Core Differentiators

• Unified App Network: Unlike per-shop apps, Cloosiv aggregated hundreds of independent coffee shops into one discovery and ordering app, simplifying user adoption—no need for multiple downloads—and boosting discovery of local spots.[2][3][5]
• Tailored for Independents: Focused solely on coffee shops post-pivot, offering contactless ordering, mobile payments, loyalty programs, order history, customization, and tipping; priced via volume-based merchant fees to make it accessible without high upfront costs.[1][2][3]
• Competitive Edge vs. Chains: Helped small shops match big players' features (e.g., 13% of Starbucks transactions via mobile in 2018) while planning POS integrations with Clover, Micros, and Square for seamless merchant workflows.[3][5]
• Strong Early Validation: Praised for avoiding mobile payment pitfalls, customer empathy, and pivot execution; supported 300+ locations with plans for rapid scaling.[2][3]

Role in the Broader Tech Landscape

Cloosiv rode the mobile ordering boom in food and beverage, accelerated by consumer demand for convenience (e.g., Starbucks' 13% mobile transactions) and independents' need to counter chain apps amid rising contactless payments.[3][5] Timing was ideal in 2018-2020, as COVID-19 amplified skip-the-line needs, but small shops lacked dev resources—market forces like fragmented POS systems (Square, Toast) created openings for specialized platforms.[1][5] It influenced the ecosystem by proving niche aggregation models for underserved verticals like coffee, paving the way for consolidators like Dripos (post-merger era, replacing multiple tools) and competitors like Joe Coffee, while highlighting payments/loyalty integration trends.[1][5]

Quick Take & Future Outlook

Post-2020 merger with Odeko, Cloosiv's standalone journey ended, but its tech and focus likely bolstered Odeko's coffee-centric offerings amid ongoing POS unification trends.[1] Looking ahead, expect its legacy in coffee mobile ordering to shape evolved platforms tackling multi-tool fragmentation (e.g., Dripos' $11M raise in 2024 for all-in-one POS/payments/loyalty).[1] As contactless and loyalty demands grow, similar niche players may consolidate further, evolving Cloosiv's influence into broader, AI-enhanced ecosystems for independents—tying back to its core mission of leveling the playing field for local coffee shops.[1][2]